The Indian government is also confiscating gold taxing holdings of black money, which is making bitcoin more and more popular in India. Any gold that hasn't been taxed gets confiscated taxed if their government can find it.
FTFY
By "black money" do you mean money tainted by contact with our evil banking overlords?
Probably gold that's had no tax paid on it. If they have an inheritance tax in India I doubt anyone admits they inherited a shit load of gold to the government. They probably also use it to buy and sell things and don't bother declaring the transactions for tax.
Can India's currency ban really curb the black economy?
http://www.bbc.co.uk/news/world-asia-india-37933231"
Black money is essentially money that has been earned - either through legal activities or through corruption - without any tax being paid on it. There are several estimates of the total amount of black money going around in the Indian economy. A World Bank estimate puts the size of the black economy at 23.2% of India's total economy in 2007.
By making high denomination bank notes worthless overnight, the government hoped that those who had black money in this form would not be able to convert it into physical assets like gold.
Those who have black money will try exchanging it for new notes. But they cannot simply go to a bank and deposit all their old cash, given that it is likely to lead to questions from the income tax department. Any other way of exchanging notes will take some doing, given that the old denomination notes form more than 86% of notes in circulation by value.
As the former central bank governor Raghuram Rajan said: "I think there are ways around demonetisation. It is not that easy to flush out the black money. Of course, a fair amount may be in the form of gold, therefore even harder to catch. Further, the government needs to quickly introduce electoral financing reform in the country. Most elections in India are fought using black money."
i do expect that the price of bitcoin will trade betweem $850 and $950 for some time,
I don't think so. Too many people want to have at least one bitcoin.
true, and not even every millionaire (denominated in $) could have one. there are more millionaires existing than bitcoin.
I understand your point, but What a silly one, no? At today's prices, as I type, a million dollars could get you about 1,093 bitcoins, but if you have a million to invest, you might need to diversify a little bit, no?
Frequently, I mention to people who might be skeptical about bitcoins, that 1% to 10% of your quasi-liquid investment funds could be reasonable to invest in bitcoin, but if you happen to be fairly skeptical and skittish about today's prices, then maybe you would feel comfortable with only 1% in bitcoin, and all those variations seem reasonable. So, at today's prices, a person who has $1million to invest but is fairly sceptical about bitcoins could still get 10.93 bitcoins... in other words, what seems to be your point, 600watt, those millionaires should act now, while the price is seemingly reasonable in a globally distributed mindset and while supplies last (before everyone else finds out the value of bitcoin).
Sure, but the very rich never want anything until it is seen as valuable to *other* rich people and unattainable to the masses. Hence the reason why they'll wait to buy until a bitcoin is worth $500K.
Two examples: 1) No one wealthy gave a shit about owning one of the original Apple computer boards until they go at auction for $1M
2) No one wealthy gave a shit about owning an original Superman #1 comic until they go at auction for $3.2M
For the super rich, it's all about rarity, subjective (perceived) value, and bragging rights.
For the rest of us, it's just about a meager store of value and perhaps some future investment.
Exactly. I didn't see 600watt's comment being aimed
at the millionaires and how diverse their investment portfolio should be.
Rather I thought 600watt was pointing out that once Bitcoin does reach a level of recognition & (increasing) value that the multitude of wealthy all decide they want "one" and the value rockets even higher... where does that leave those of us that invested now and held on for the ride?
https://www.theguardian.com/technology/2017/apr/11/meet-the-millennials-making-big-money-riding-chinas-bitcoin-waveMeet the millennials making big money riding China's bitcoin wave
[He] believes that in 10 years’ time, the value of the cryptocurrency will be “one bitcoin, one house in Beijing”. Minor shocks to the system, like the recent suspension of bitcoin withdrawals in China, are “just like breathing.”